City Corporation and PBoC Research Institute launch report on financing Belt and Road

The City of London Corporation and the PBoC Research Institute have today published a report reaffirming the need for projects in China’s Belt and Road Initiative (BRI) to be commercially viable and market oriented.

The report, Building an investment and financing framework for BRI, was launched at a roundtable in Beijing by the Head of the Research Institute of PBoC, Guofeng Sun. The City Corporation’s Policy Chairman delivered a message by video link at the event, which was sponsored by leading global law firm Linklaters.

The publication, in English and Chinese, features analysis by the research group of Research Institute of the People’s Bank of China (PBoC) on current BRI projects and development of the Initiative, and the role London can play in the BRI as an important international financial centre.

It finds that since 2013 there have been more than 4,500 domestic and foreign BRI projects with a total project value of more than $5 trillion.

The report details proposals to set up a stable, sustainable and risk-controllable financing system suited to the BRI investment, based on innovative investment and financing models, and promoting public-private capital partnerships.

It also highlights the work of UK organizations in Belt and Road projects, including the Green Investment Group, Standard Chartered Bank and HSBC.

Catherine McGuinness, Policy Chairman at the City of London Corporation said:“This report is the latest publication by the City Corporation to help position London as the natural western hub of the Belt and Road Initiative, for which the UK has so much to offer.

“It is hugely important to ensure sustainability is at the heart of the BRI, both from a commercial standpoint and also an environment angle.

“I hope this publication goes someway to helping us achieve this.”

Guofeng Sun, Head of the Research Institute of the People’s Bank of China said:

“London boasts an investment community of great diversity and foresight as an important international financial centre.

“London’s capital market is highly international and employs some of the most cutting-edge innovative models in financing.

“China and Britain’s cooperation in investment & financing for the B&R offers broad services for the sustainable financing for the B&R projects and new opportunities and ways for financial institutions and investors in the two countries to work together.”

The report can be found here.

The City of London Corporation had a dedicated programme of engagement with China for many years, and has had representative offices in Beijing and Shanghai since 2008. There are more than 30 Chinese institutions in the City and more are in the process of opening a representative office.